Quiksilver Stock Drops 27% After Hours

by The Editors on June 2, 2014

Quik Logo10Quiksilver’s big plans to turn the company around with the help of former Disney Consumer Products chairman Andy Mooney don’t seem to be working out so well if financials for the quarter ending April 30, 2014 are any indicator. Analysts expected Quiksilver’s loss for the most recent quarter to be in the in two cents a share range, but the loss last quarter was 15 cents a share. A year ago it was only a 12 cents a share loss, according to a story on MarketWatch.
How are Mooney’s plans working? Take a look at this:

During the latest quarter, sales at its namesake brand declined 7% to $167 million excluding currency impacts. At its Roxy brand, sales dropped 6% to $121 million, and DC brand sales fell 19% to $103 million, also excluding currency fluctuations.

In addition to losing Kelly Slater (who now looks like he got out just in time) Quiksilver lost $53.1 million in the last quarter, up from $32 million during the same period a year ago. And it appears the worst is not over.

The company expects that the general sales trends of recent quarters will continue into the second half of the fiscal year, with continued net revenue declines in the North America and Europe wholesale channels being partially offset by net revenue growth in emerging markets and e-commerce.

Where do they go from here? Seriously? Quiksilver Princess Division?

[Link: MarketWatch]

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